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Low gasoline prices have surely been helping fuel this sluggish economic recovery but now they're ticking up a little bit.
The current average nationwide three dollars and 52 cents a gallon lowly Jew if -- -- Illinois in the Chicago area -- -- highest prices in the lower.
Forty game right now so the national average is up two cents from a week ago -- bit your senior economist at Wells Fargo joining us now from Charlotte, North Carolina with.
Mark how worried are you about gas heading in the wrong direction and what that could do the economy at this point.
Well we're we're not that worried about gas say that the markets do seem to be relatively well supplied we have some normal seasonal pressures that that tend to kick -- as people start driving more.
It's I wouldn't be surprised to see prices go up.
But but the drop in prices put that we had from earlier this year was that was a big provided a big lift -- the economy.
And I remember consumer spending was was really -- in the first three months of the year and came down and April and and that that help provide a little bit of a boost now that's gone.
I am afraid consumer spending it's is going to have a real tough tough road ahead for.
What we -- -- the heck can we gotten used to dealing with and what an average of three dollars and 52 -- account which is down.
Up fairly dramatically from a year ago how is it that we can even.
It it was unthinkable.
Ten years ago that this is what we would be dealing with year in and year out.
Well yeah it's really not so much the change.
Indian prices from here on out 350.
When you adjusted for inflation it's actually about where we were back in the late 1970s and then we had the big runup in gas prices back -- some work.
We're we're we're kind of on the even on even ground with where we were back that.
The problem is is that we don't have any income growth -- comes just aren't growing right now you look at Friday's employment number.
And and a lot of the jobs 45% of the jobs of -- headed.
Came in very low paying industry seems like retail traded in the hospitality industry -- restaurants.
And all of those jobs for part time that it looks like employers are reducing the hours for their workers officials not a whole lot of income growth being generated right now.
And when you have gas prices at 350 gallon it's it's hard to thwarted anything goes up a little it really.
Cuts in the south -- -- what's.
It kick in income growth why our businesses more willing to spend.
Hiring people and actually paying people more it knew it.
Why -- they more optimistic about at least the stock market being at record record highs.
What I see this is where it gets really -- the folks at the Federal Reserve think it's because interest rates are low enough so they're out purchasing 85 billion dollars in bogged each month.
That trying to to drive interest rates lower I don't think that's the problem.
We do know there's a lot of uncertainty about fiscal policy people are worried about taxes and that.
That's a bit of a problem but there are some that so -- the government needs to go out there and spend more money and drive demand.
Handle I think there's been -- enough money I think that's a problem.
The the big problem in my view is a sister so much uncertainty about the policy environment businesses don't know how the health care -- going to -- of we don't know exactly how dot franks would affect the lending environment.
It's so business is collectively they're pulling back they're not investing as much equipment right.
They're not hiring is much workers in until we get some certainty regarding the policy environment penalties -- -- much.
Mark vanguard put a number on it last week -- McNabb is CEO wrote that editorial in the Wall Street Journal.
261 billion dollars in policy and certainly that's the drag 800 dollars a person says -- elevenths out.
That hurts not thanks.
I read I read that I think he's conservative I think it's a little bit more that may be twice as much.
Wow Marc thank you thanks for that as well always -- vendor from Wells Fargo.
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